University of Tunis

Tunis Business School Spring 2022

BA 310: Operations Research

Midterm Examination-Solutions

Question 1 (30 points)

Let Xi be one if activity i is to be frozen and zero otherwise, for i=1,…4.
1. The objective is to save as much cashflow as possible. Hence, the objective function
will be

Max Z=45000 X1 +66000 X2 + 48000 X3 +54000 X4 (1)

The urgent need of 100,000 TND of cash flow is formulated as
45000 X1 +66000 X2 + 48000 X3 +54000 X4 ≥ 100,000 (2)
The firm must warrant the operation of at least 2 activities to keep in business is formulated as:
X1 + X2 + X3 + X4 ≤2 (3)
“If activity 1 or 2 is to be frozen, then activity 3 must preserve its operation” is formulated as
follows:
X1 + X2 ≤ 2(1- X3) (4)
“If activities 1 & 2 are to be kept operational, then activity 4 must be frozen” can be formulated
as:
1- X1- X2≤ X4 (5)
Binary variables
Xi = 0, 1, i=1,…4 (6)
2. Introduce a new binary variable, Y. Then, change (2) by (2)’& (2)” where
45000 X1 +66000 X2 + 48000 X3 +54000 X4 ≥ 130,000Y (2)’
45000 X1 +66000 X2 + 48000 X3 +54000 X4 ≤ 250,000Y (2)’’
Note that with Y=1, the saving in cashflow will be at least 130,000 from (2)’.
Otherwise, (2)” will force the saving to be zero.

Question 2 (20 points)

Tic the correct statement in each of the following assertions
1. In a branch & bound method, we branch on
a. Any non-integer variable
b. Specific non-integer variables
2. When branching, the objective value of the relaxed LP’s
a. Improves
b. Degrades
c. It depends on the particular case at hand
3. When we encounter an upper bound
a. An optimal solution is found
b. A feasible solution is found
c. An update of upper bounds can be made
d. None of the above
4. We stop branching when
a. An integer solution is found
b. An optimal solution is found
c. An infeasible solution is found
d. It is no more possible to find an optimal solution
e. Any of the above holds
Question 3 (50 points)
1. Assuming that each of the three components will be attacked by a Russian s-400
missile, what is the current probability that the nuclear reactor preserves its
functionality?
Currently, the probability of simultaneously intercepting missiles on all three targets
is 0.4*.5*.45 = 0.09
2. Use dynamic programming to determine the optimal allocation of Patriot missiles
among the three components that maximizes the chance of the nuclear reactor to
keep operating upon attack.
Let 𝑥i be the number of missiles to allocate to component i, i=1 for P,2 for T, and 3 for
B. Also, let 𝑝i (𝑥i) be the survival probability of component i upon strengthening with
𝑥i missiles. Then, the objective is given by:
max∏3𝑖=1 p𝑖 (x𝑖)
s.t. ∑3𝑖=1 𝑥𝑖 = 2; 𝑥𝑖 ∈ 𝐼𝑁
Let i=1 for P,2 for T, and 3 for B, 𝑥i the number of missiles to allocate to component
i, and si be the number of missiles not allocated yet to components i, i+1, …3.
n=3
x3 𝑓3∗ (s3) x*3
s3
0 0.45 0
1 0.65 1
2 0.80 2

n=2
𝑓2 (𝑠2 , 𝑥2 ) = 𝑝2 (𝑥2 )𝑓 ∗3 (𝑠2 − 𝑥2 )
s2 x2 0 1 2 𝑓2 ∗ (𝑠2 ) 𝑥2 ∗
0 0.225 - - 0.225 0
1 0.325 0.279 - 0.325 0
2 0.400 0.403 0.315 0.403 1

n=1
x1 𝑓1 (𝑠1 , 𝑥1 ) = 𝑝1 (𝑥1 )𝑓 ∗2 (𝑠1 − 𝑥1 )
s1 0 1 2 𝑓1 ∗ (𝑠1 ) 𝑥1 ∗
2 0.16120 0.17875 0.14625 0.17875 1

It follows that the optimal solution is to place one missile to protect component 1 (the
pumping system and 1 missile to protect component 3 (the boiler). The probability of
intercepting all 3 Russian missiles will jump from 0.09 to 0.17875 (i.e., practically
doubles).